...10/8/12 The Sustainable Supply Chain ‑ Harvard Business Review The Sustainable Supply Chain An Interview with Peter Senge by Steven Prokesch To make progress on environmental issues, Peter Senge says, organizations must understand that they’re part of a larger system. Senge, the founder of the Society for Organizational Learning, a faculty member at MIT Sloan School of Management, and the author of The Fifth Discipline and The Necessary Revolution, spoke with HBR senior editor Steven Prokesch about the challenge of leading organizations at a time when their supply chains need to be radically transformed. HBR: What does it take for an organization to get serious about issues like water, energy, and waste in its supply chain? Senge: It starts to get real when people believe these matters are strategic—that they will shape the future of the business. I use the word “sustainability” as little as possible because it’s so generic; it makes people’s eyes glaze over. To confront these issues practically, you need employees who are innovative—who have the skill and the vision to redesign products, processes, and business models—and who understand the business context. Most important, they need to be able to tell a story about why this is a meaningful journey. If they’re stuck in the mind-set (so popular in business schools, unfortunately) that a company exists to maximize return on investment capital, with an emphasis on short-term financial performance, they won’t...
Words: 1244 - Pages: 5
...Article Sustainable Fashion Supply Chain: Lessons from H&M Bin Shen Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, China; E-Mail: binshen@dhu.edu.cn; Tel./Fax: +86-216-237-3621 Received: 15 July 2014; in revised form: 15 August 2014 / Accepted: 19 August 2014 / Published: 11 September 2014 Abstract: Sustainability is significantly important for fashion business due to consumers’ increasing awareness of environment. When a fashion company aims to promote sustainability, the main linkage is to develop a sustainable supply chain. This paper contributes to current knowledge of sustainable supply chain in the textile and clothing industry. We first depict the structure of sustainable fashion supply chain including eco-material preparation, sustainable manufacturing, green distribution, green retailing, and ethical consumers based on the extant literature. We study the case of the Swedish fast fashion company, H&M, which has constructed its sustainable supply chain in developing eco-materials, providing safety training, monitoring sustainable manufacturing, reducing carbon emission in distribution, and promoting eco-fashion. Moreover, based on the secondary data and analysis, we learn the lessons of H&M’s sustainable fashion supply chain from the country perspective: (1) the H&M’s sourcing managers may be more likely to select suppliers in the countries with lower degrees of human wellbeing; (2) the H&M’s supply chain manager...
Words: 6445 - Pages: 26
...implicit compact that was about protection, autonomy and entitlement. How can management change the psychology of the physicians that they can do whatever they like because they are protected by the administration? Conclusion: Since implementing the TQM management model has both upsides and downsides, management should implement TQM considering the downsides too. In my view, VMCC should standardize the work process so that it can reduce waste and save time. It can also give some autonomy to physicians as a team in special cases. Another conclusion focuses on reducing the cost of the company. I think Management can consolidate less profitable service lines, but with proper caution so that this decision does not affect the entire value chain activities. Last conclusion focuses on how to change the psychology of the physicians from emotional retreat. Management can review the performance of the physicians, group effort, group participation and respect for other members. It can also consider one or two incompetent group members too, so that one of the team members within the group cannot destroy whole team effort. Analysis: VMCC executives think that TQM is a...
Words: 901 - Pages: 4
...Student ID: 1427723 Working Title/Provisional Topic Title: Sustainable supply chain management in recycling industry: A case study of Lavergne Group in Canada. 1. Aims/objectives/Research Questions: 1.1. Research aims The aim of this study is to evaluate the problems associated with securing a reliable and cost effective sustainable supply chain in the recycling industry and elements of Sustainable Supply Chain Management (SSCM). Recycling is a relatively new industry and the amount of recycling in countries varies significantly based on Political, Industry and Community issues. Academic and corporate awareness of sustainable supply chain and logistics issues has increased significantly in recent years (Seuring and Muller, 2008). Whilst demand for recycled raw materials is consistently increasing, the prerequisites for establishing a reliable supply chain are complex. Without a reliable and cost effective supply chain, manufacturers will avoid the use of recycled materials and instead choose less environmentally friendly virgin materials. Regardless of the reason for a company going ‘Green’ and looking for sustainability, there are key market drivers and requirements for such goals to be successful. This paper will examine the key supply chain factors that are required to optimise a sustainable supply chain model with respect to recycling and utilisation of recycled products...
Words: 5350 - Pages: 22
...FEDEX TOWARDS PALM OIL INDUSTRY Core competency identified to be implemented in palm oil industry is Fedex supply chain management and its tracking device CORE COMPETENCY its infrastructure which is hard to imitate- a world wide network of planes trucks ships and hubs need a huge amount of capital. its dedication to innovation and embracing new technologies. – eg, them being the first logistic company to embrace the www as a tool to reach out to customers {attitude}. Like their wireless solution for faster shipping time, allowing customers to track their packages while travelling etc. Plus supply chain management and tracking capabilities. TARGET: GREEN INDUSTRY Solar+ biodiesel = substitutes for fossil burning Why green energy industry? In this presentation we will be focusing on 2 alternatives. Solar and bio-diesel. In support to the relevance of green energy, according to Eye For Transport, surveying 250 north American supply chain executives. The green transportation &logistics report revealed financial(ROI) and public relations are the driving force. 75% of a company‟s carbon print come from logistic and transportation. 6% respondents designate green issues as unimportant While 69% agree that green issues are important to their transport and logistics processes 9% find it as their No.1 priority. Total of 78% find relevance towards green transportation and logistics. Now. It is found greening their T&L process is fundamentally...
Words: 1595 - Pages: 7
...Greening the Supply Chain at Danaher Companies across the globe are seeking energy-efficiency, new environmental programs, and related methods to protect the fragile business environment. Danaher is among one of the companies leading environmental initiatives and identifying opportunities to “Green” their supply chain. Greening a supply chain can be achieved by implementing a process of using environmentally friendly agents and transforming them into byproducts that can be improved or recycled within the existing environment. This process develops outputs that can be reclaimed and re-used at the end of their life-cycle thus, creating a sustainable supply chain where companies can reduce costs while helping the environment. At Danaher, many times these initiatives are the result of federal regulatory initiatives or are customer driven. In an interview with John Dion, Vice President of Global Services for Danaher, he gave an example of the latest request from some of their top customers relating to consumable waste streams. One area that the company is exploring is expanding their use of water based solvents and reducing the amount of solvent based chemicals in their supply chain. He stated that customers are seeking medical devices containing green alternative components as part of their own “green” strategy. Since Danaher is highly focused on meeting the needs of its customer, it has taken the steps needed to use the “environmentally friendly” solvent as much as possible...
Words: 900 - Pages: 4
...Walmart has been taking the necessary steps to move toward 100% sustainable seafood for the better part of ten years. In working with the MSC they are establishing guidelines for fisheries and encouraging their suppliers to process and distribute sustainable fish, be it wild caught or certain farm raised varieties. As of the end of 2009, “Walmart’s wild seafood was 55% MSC certified… you can’t be 100% certified when you can’t be certified on a number of products. We’re working with MSC to encourage them to build these other certifications standards.” While Walmart is making the necessary changes on the back end to improve the sustainability in their supply chains, they have not truly begun advertising the value of sustainable seafood to their customers. As a result, customers are less likely to pay the higher costs for these “sustainable” alternatives, when they do not recognize the value. In the article outlining Walmart’s Sustainability Strategy specific to inventory management within their seafood supply chain, The Fishin’ Company is one supplier that has embraced Walmart’s asks, spending more time, effort and money to adhere to their sustainability standards. One of the main issues that Walmart faces is the length of time in which it takes for a fishery or supply-company to become MSC certified; the process can take up to two years. Given the increased demand, Walmart cannot afford this lapse in time. Walmart needs to work with the MSC to expedite the process. In order...
Words: 1087 - Pages: 5
...decade. In the last 10 years, Wal-Mart has achieved strong and constant growth in sales and net income. It has maintained the leading position in the U.S. discount retail industry and has become the largest retailer in the world. With the maturity of the industry, coupled with the intense competition from rivalry companies, maintaining the current level of high performance becomes very challenging. The Porter’s Five Forces analysis reveals that the competition among rivals is the driving force of the industry, in which price is the most critical factor. The value chain analysis and resource based view analysis show that Wal-Mart has been very successful in implementing the strategy as the low-cost leader by inculcating cost efficiency in its corporate culture, management style, and operations. It has been the pioneer in adopting cutting edge technology to streamline its supply chain, and to understand and respond timely to customer demand. Wal-Mart has developed many strengths that help guard its leading position and open door to many opportunities for expanding the business. However, it also faces threats from growing too big and in many areas, which makes it vulnerable to losing control, weakened cooperation among stores and regions, and competition in multiple fronts. Wal-Mart should be caution in its growth strategy, especially in the expansion of its international presence. Although its financial strength, management skills, and operation efficiency...
Words: 4139 - Pages: 17
...achieve and respond these expectations. Jamali and Mirshak (2007) state that CSR approach helps to attract global attention and acquire a new resonance in the worldwide economy. However, Frankental (2001) claims “Do CSR is a public relations (PR) invention?” and company focus on promoting itself, getting an edge on its revivals rather than being ethic to protect the environment or maintain human welfare. Therefore, in this essay, author is going to discuss about the different between CSR as well as PR. Moreover, it will apply an example of IKEA to examine the effectiveness of its CSR in supply chain and analyze CSR as a business strategy to maintain the sustainability of business, financial control and risk management. Afterwards, author will highlight the limitations of CSR policy and finally provide some recommendations to improve the CSR strategy for corporates in order to maintain the sustainable resources and increase the brand value as well as profit. Definition of PR According to Clark (2000) points out that public relation (PR) as a communication field from public information to reputation management to relationship management, it is emphasized on the promoting corporate image or two-way communication to gather audience feedback....
Words: 2989 - Pages: 12
...in 2005, Walmart was able to generate cost savings and profits from different areas of its supply chain. Having faced challenges to convince all its stakeholders to participate in this strategy, there is long way from setting a firm foundation for their strategy supply chain wide and to reach a consensus with its stakeholders on the need to focus on sustainability. However, with 2006 coming to an end, Ruben and Elm are pressured to evaluate the performance of their sustainability strategy based on both business and sustainability factors, and to decide whether to continue or halt the programme. Analysis of sustainable strategy Being profit-driven, Walmart has to ensure that business value is derived from the sustainability strategy, in order to maintain its dominant retail position. One benefit was cost reduction throughout the value chain of its products. Waste was effectively eliminated and efficiency in production, packaging, transportation, store operations and customer use was realized. There was introduction of an additional revenue stream by selling the firm’s carbon credits through reduction in carbon emissions. Furthermore, it allowed Walmart to seek strategic level input from outside parties, creating collaboration with various companies to come out with new and innovative green products. Assurance of supply is also achieved, where Walmart was able to lock-in available supply or contribute to the preservation of scarce resources. Better suppliers’ quality was realized...
Words: 1263 - Pages: 6
...they are earning. Nike’s future depends on the reconstructing the information that are being sent to customers, suppliers, investors, so that company is sustainable as well as profitable. Changing the rules and regulation is not only enough but they should also engage in transcending leadership and should be able to resolve systematic problems to achieve the goals of the organization. If they don’t make any changes in the financial markets, all their changes are worthless. 1) What are the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? * There were many cases found such as mistreating employees in more than one third of Nike’s south Asian plants. There were also reports claiming most of the factories in the same region didn’t allow access to toilet or to drink water. And in some factories the workers were forced to work all seven days of the week. They were also paid below the minimum and were also punished if they refused to work overtime. They wanted to reconstruct the signals being given out so that they could be sustainable as well as profitable. 2) Discuss the meaning and implications of the statement by a Nike representative that “Consumers are not rewarding us for investments in improved social performance in supply chains.” * Nike started to build the best possible environment in the market by changing the system for upgrades which will help in bringing more customers...
Words: 528 - Pages: 3
...Question 1: “How is the company deriving value from its sustainability practices?” Walmart has been deriving value from its sustainability strategy through multiple factors. First of all, Walmart was able to create value by introducing new revenue streams from sustainable projects. For example the recycling initiative would create revenue stream that would otherwise not have been realized. Walmart has also created value by creating transparency within its own supply chain. By being directly involved with its suppliers, it was able to manage its supply chain. Walmart’s goal via its networks was to influence stakeholders, primarily its suppliers, to initiate sustainable practices that would be in line with Walmart’s values. By doing so, Walmart has to monitor every supply chain participants, and by doing so, they were able to eliminate redundant channels in the process. For example, instead of having a product manufactured and assembled in two different countries, Walmart was able to eliminate unnecessary channels by understanding the process, and thus creating a more efficient supply chain that is both innovative and cost effective. Another thing that they did was their overall cost reduction in the value chain processes. It was able to reduce inefficiencies in packaging, transportation, and waste, among other factors. By doing so, it sees the potential cost reduction in the long run. Furthermore, Walmart derived future long-term value through its game changer strategies...
Words: 662 - Pages: 3
...Drawing on the Resource Based View literature, evaluate whether and how Zara generates sustainable competitive advantage. A firm is said to have competitive advantage when its profits exceed the average of its industry and that of its rivals (Grant, 1991). According to Grant (1991) the RBV sees organizations as a collection of resources which when combined forms organizational capabilities. The goal of every business strategy is to achieve a sustainable competitive advantage. According to Collis and Montgomery (2008) a firm’s resources are responsible for its better performance while working in a dynamic environment which academics term as resource based view of the firm (RBV). The RBV analysis assumes that both resources and capabilities are important for better performance and explains why some firms perform better than others in an industry. Using RBV as a framework this essay aims to examine how ZARA generates sustainable competitive advantage. (Opening is good, you have been able to introduce theory that would be discussed the essay). “A fast fashion system combines quick response production capabilities with enhanced product design capabilities to both design latest products that capture the latest consumer trends and exploit minimal production lead times to match supply with uncertain demand” (Cachon and Swinney, 2011). Fast fashion is widely gaining recognition as being a key enabler for success for modern fashion retailers (Barnes and Lea-Greenwood, 2006). Fashion...
Words: 2205 - Pages: 9
...Distributor About Sysco: Introduction: Distribution and supplying has always been a challenge with companies which are into distribution. Sysco has been a global leader for its distribution efficiencies. It supplies food products to restaurants within the USA. Sysco has also been associated with selling and marketing food products across the paraphernalia of restaurants, health care institutes, restaurants, and to other food industries. It supplies equipment and supplies for the hospitality and food industry. The firm serves out of 196 distribution facilities located throughout the USA, Bahamas, Canada, Ireland & Northern Ireland which take care of approximately 425,000 customers. Sysco boasts of a very diverse product line, employing around 50,300 employees Sysco sells ingredients necessary to prepare meals and also ancillary items associated with the food equipment. This has helped in bringing the Sysco difference to the lives of their customers and success to the business. ((Walker & Phillips, 2009) Sysco’s closest competitors are Bunzl plc, Jeronimo Martins SGPS, Booker Group PLC to name a few. Sysco has been able to achieve its position as a market leader in the food distribution industry due to the efficiency of operation and competitive advantages, including sustainable operational processes. Comparison of distributors: | Price SYSCO Sherwood | Quality Sysco Sherwood | Value Sysco Sherwood | Seafood | Choice affordable...
Words: 1099 - Pages: 5
...analysis of five forces, the threats of new entrants and substitution are low, and customers‟ and suppliers‟ bargaining power are moderate. However, the intensity of competitive rivalry is quite high because similar fashion firms are competing. Fast fashion has a shorter life cycle for products than most industries. This spurs both creativity and product innovation but demands more efficiency and advanced technology to reduce waste and avoid distribution delays. The most important core competencies for Zara are its flexible manufacturing, efficient distribution structure, low level of inventory and the principles of its employees. Its financial results as the flagship within the Inditex group have been strong for a decade and look sustainable for the immediate years ahead. Based on the analyses and prior...
Words: 6985 - Pages: 28
